The Mathematics of Options

Quantifying Derivative Price, Payoff, Probability, and Risk

  • Michael C. Thomsett

Table of contents

  1. Front Matter
    Pages i-xxii
  2. Michael C. Thomsett
    Pages 1-29
  3. Michael C. Thomsett
    Pages 31-53
  4. Michael C. Thomsett
    Pages 55-78
  5. Michael C. Thomsett
    Pages 79-97
  6. Michael C. Thomsett
    Pages 99-123
  7. Michael C. Thomsett
    Pages 125-160
  8. Michael C. Thomsett
    Pages 161-196
  9. Michael C. Thomsett
    Pages 197-230
  10. Michael C. Thomsett
    Pages 231-254
  11. Michael C. Thomsett
    Pages 255-267
  12. Michael C. Thomsett
    Pages 269-284
  13. Back Matter
    Pages 285-331

About this book


This book is written for the experienced portfolio manager and professional options traders. It is a practical guide offering how to apply options math in a trading world that demands mathematical measurement. 

Every options trader deals with an array of calculations: beginners learn to identify risks and opportunities using a short list of strategies, while researchers and academics turn to advanced technical manuals. However, almost no books exist for the experienced portfolio managers and professional options traders who fall between these extremes.

Michael C. Thomsett addresses this glaring gap with The Mathematics of Options, a practical guide with actionable tools for the practical application of options math in a world that demands quantification. It serves as a valuable reference for advanced methods of evaluating issues of pricing, payoff, probability, and risk. In his characteristic approachable style, Thomsett simplifies complex hot button issues—such as strategic payoffs, return calculations, and hedging options—that may be mentioned in introductory texts but are often underserved. The result is a comprehensive book that helps traders understand the mathematic concepts of options trading so that they can improve their skills and outcomes.


investing speculation volatility parity hedging options derivatives covered calls uncovered puts straddles spreads Black-Scholes pricing model

Authors and affiliations

  • Michael C. Thomsett
    • 1
  1. 1.Spring HillUSA

Bibliographic information

  • DOI
  • Copyright Information The Editor(s) (if applicable) and the Author(s) 2017
  • Publisher Name Palgrave Macmillan, Cham
  • eBook Packages Economics and Finance
  • Print ISBN 978-3-319-56634-4
  • Online ISBN 978-3-319-56635-1
  • Buy this book on publisher's site